Title:	The contribution of human capital dynamics and job mismatch to the slow recovery from the Great Recession
DNr:	SNIC 2018/3-258
Project Type:	SNIC Medium Compute
Principal Investigator:	Karl Walentin <karl.walentin@nek.uu.se>
Affiliation:	Sveriges riksbank, Stockholms universitet
Duration:	2018-06-01 – 2019-06-01
Classification:	50201
Homepage:	http://www.riksbank.se/research/walentin
Keywords:

Abstract

In this paper we quantify the importance of human capital dynamics and job mismatch in slowing down recoveries from recessions, in particular the Great Recession. The basic question we ask is to what degree i) human capital dynamics induced by skill loss during unemployment and ii) job mismatch (low match quality) contributed to the slow recovery from the Great Recession, in particular the low post-2009 growth in GDP, labor productivity and real wages. The reason that mismatch has increased is that workers that lost their jobs in the recession tend to be less well matched compared to their pre-recession jobs.